The Concept of Musharakah
The Concept of Musharakah
The Concept of Musharakah
Shjrkat-ul-wuJooh
Here the partners have no investment at all.
All they do is that they purchase the
commodities on a deferred price and sell
them at spot. The profit so earned is
distributed between them at an agreed ratio.
NOTE
All these modes of "Sharing" or partnership are termed
as "Shirkah".in the terminology of lslamic Fiqh, while
the tern! "Mosharakah" is not found in the books of
Fiqh.
The term Musharakah has been introduced recently by
those who have written on the subject of .Islamic
modes of financing and it is normally restricted to a
particular type of "Shirkah“. That is the Shirkal-ul-
amwal, where two or more persons invest some of
their capital in a joint commercial venture. However,
sometimes it includes Shirkat-ul- a'mal also where
partnership takes place in the business of services
FURTHER CLASSIFICATIONS
Each of the above three types of Shirkat-ul-Aqd are
further divided into two types:
Shjrkat-Al-Mufawada: (Capital & labor at par):
All partners share capital, management, profit, and risk
in absolute equals. It' is a necessary condition for all
four Categories to be shared amongst the partners; if
any one category is not shared, then the partnership
becomes Shirkat-ul-Ainan. Every partner who shares
equally is a Trustee, Guarantor and Agent on behalf of
the other partners.
FURTHER CLASSIFICATIONS
Shirkat-ul-Ainan:
A more common type of Shirkat-ul-Aqd
where equality in capital, management or
liability might be equal in one case but not In
all respects meaning either profit is equal but
not labor or vice versa.
The basic rules and Features of
Musharakh